Insurance Centre

Big banks are determined to kill of their mortgage competition by deceiving consumers into believing it was the brokers who cause the housing crisis. The bankers are using the media to pump story after story with one message: Don’t trust mortgage brokers.

And it’s working!

How rare it is to hear a media story or an industry professional say something nice about mortgage brokers.

Heck, I’d settle for a story that was simply accurate!

Mortgage Brokers Marginalized

One of the biggest over-reactions politicians will have to the mortgage crisis is sweeping State and Federal legislation putting truly unreasonable restrictions on mortgage brokers…restrictions the banks will never see!

It’s happened in my State of Colorado. What use to be a State too lax in regulating mortgage brokers has now gone overboard coming out with a new requirement every couple of months. The first regulation was the background checks and the surety bonds. Then came the O&E insurance and testing requirements all designed supposedly to “protect the public” when in reality it’s just another way to consolidate the mortgage market in the hands of just a few mega-banks.

All of this bad press and regulatory red-tape has pushed thousands of good folks out of the business and marginalized the reputations of those that remain.

Mortgage Market Dominated By Five Banks

Paul Muolo writes,

“We can all sleep again, knowing that the big boys are stable, and together control 67% of the mortgage market in terms of receivables on first and second liens. Here’s how the servicing numbers shake out in terms of market share: Bank of America (21.68%), Wells Fargo (17.65%), Chase Home Finance (15.09%), CitiMortgage (8.49%) and Residential Capital LLC (4.14%).

Now for the bad news: the top five control 67% of the residential servicing market, which means in my book most of these firms are “too big too fail” just like Fannie and Freddie were. Think about it for a second: what if something goes wrong with Bank of America, which now services $2 trillion in home mortgages for American consumers? I’m not saying Bank of America is in danger financially but we’ve created a financial system – for better or worse – where too much risk is in the hands of too few. There’s something wrong with that.”

Did you catch that?

The top five banks now control almost 70% of the mortgage servicing market…and it’s not over!

Putting the blame on mortgage brokers for the mortgage crisis tells me they have their eye on dominating the retail side of the market as well.

Will Mega-Banks Take Over Retail Too?

Paul is a smart guy and wrote one of the best books on the mortgage crisis available called Chain of Blame…if you really want to know who caused the crisis…don’t read media stories…read that book.

Paul’s contention we are creating another “too big to fail” problem is well taken, but I’ll go one further. The devastation to the mortgage broker side of the industry is real and if the battle for the retail mortgage market is lost to a meg-bank propaganda campaign, it’s the consumer who will suffer most.

If we let these mega-banks “win”, the cost of getting a mortgage will skyrocket.

Law makers and reporters should be watchful not to be turned into a dupe for the banking industry.

At one time mortgage brokers originated 70% of all first mortgage applications, but the continuous hatch job the banks perpetrated through the media and State legislators is having the desired effect. Mortgage originations are now 60% in favor of banks…a big switch in just a few years.

I am not saying that mortgage brokers did not deserve the bad press. Many of them did…but certainly not all. Of course, it’s not easy for the average mortgage consumer to tell the difference between “good guys” ands “bad guys” when it comes to mortgage brokers. We can help on that front. We instruct people finding ethical, professional mortgage brokers every day with our website, articles, and reviews.

If consumers do not patronize the local mortgage brokers, they will wake up one day and the only place to apply for a mortgage is at a “mega-bank”.

Gosh, I hope not!

Every major U.S. credit card company with the exception of one charges a two to three percent foreign transaction fee when you use your credit card abroad. Until recently, many credit card companies did not clearly disclose these fees in their terms and conditions. Consequently, many people received a notice of a class action lawsuit settlement in regards to these fees earlier this year. Now that the lawsuit has been settled, credit card companies are required to clearly state foreign and international transaction charges on credit card applications. Here, we will look at ways to minimize and avoid these fees.

First, if you do not know how much your current credit card company charges for international transactions, contact customer service to find out. The vast majority will inform you that this fee is three percent. With the US dollar sagging, paying an extra three percent on every purchase can really hurt the wallet. Fortunately, there are a few ways to avoid these charges.

If you have cash available, using a debit card eliminates this fee. Most banks do not tack on a transaction fee for ATM withdrawals. Plus, the foreign currency rate you’ll get from your bank is often significantly better than what you would get at a foreign currency exchange booth. Again, exchange rates and potential fees vary from bank to bank, so it is important to call ahead.

While ATM withdrawals are generally free of foreign transaction charges, using your debit card as a credit card comes with some risks. First, a credit card provides much better fraud protection than a debit card. If, for example, an unscrupulous merchant overcharged or fraudulently used your credit card, you can easily contest the charges and get a refund. If, on the other hand, you debit card was fraudulently used, you will not only be faced with a depleted bank account, but it often takes a great deal longer to get your money returned. For this reason, using a debit card to make purchases abroad can prove risky.

Ultimately, the only way to pay no international transaction fees is to use a credit card doesn’t charge these fees. By using a no fee credit card, you get the security a credit card provides without the annoying added expenses.

In this last article of the series on credit cards we’re going to discuss some of the features of credit cards. These are as numerous as the number of cards itself. These features will not be in any particular order.

Of course the main feature of a credit card is the interest rate you pay on any unpaid balance. With most cards, after your initial purchase, you get 30 days to make your payment. If you pay the balance off in full, which is actually required with some cards like American Express, then there is no interest charge because there is no balance left to pay. However, if the charges are not paid off within 30 days then the remaining balance is carried over with an interest rate charge. The rate depends on a number of factors including the current APR and the customer’s credit rating. Persons with a good credit rating get a better rate than those with a poorer credit rating.

Another feature of credit cards is of course your credit limit. This is the amount of money you are allowed to charge to your card before the credit card company cuts you off. Again, the credit limit will usually depend on the cardholder’s credit rating. Persons with a good rating will have a higher credit limit than those with a poorer rating.

A feature of credit cards that most people overlook, and this is where they get killed, are fees associated with just having the credit card. This is called an annual fee. Today, many cards have no annual fee but for those with poor credit these are hard to come by. Other fees are cash advance fees, balance transfer fees, late payment fees and penalties, which usually result in higher interest rates, over credit limit fees, credit limit increase fees, setup fees, return item fees, and a host of miscellaneous fees that each cardholder should review before using their card.

Then of course there is the kind of card itself, which is a feature. There are basically three types of credit cards; secured cards, regular cards and premium cards. Secured cards require a security deposit. The larger the security deposit the higher the credit limit the person gets. Secured cards are usually gotten by people with limited credit histories who have trouble getting cards. Regular cards don’t require any security deposit and have higher credit limits than those cards but not as high as premium cards. They also don’t have as many features and benefits. Premium cards have the highest credit limits and come with a number of extra features such as product warranties, travel insurance, or emergency services.

Other features of credit cards are rebates on purchased items. Some of these cards refer to these as cash back incentives. This is where when you make a purchase, say for $100, you get a percentage of that money back. The percentage of the money you get back depends on the card. One of the first credit cards to offer this feature was the Discover Card.

These are the basic features of most credit cards. To get a list of the specific features of the card you have or want to get you will have to contact the credit card company itself for this information.

Until few years back lenders were reluctant to advance loans to people suffering from bad credit history. But with growing competition in the financial market lenders are now ready to take risk by advancing loans to people without any credit checks. Loans without credit checks are also one such loan that can be availed by bad credit borrowers. A person facing arrears, defaults, CCJ, IVA, bankruptcy etc can easily avail loans without credit checks without going through any credit check.

Loans without credit checks are available in two form namely Secured and unsecured loans without credit checks. While collateral is required in order to avail secured loans without credit checks, unsecured loans without credit checks can be availed without placing any security against the loan amount. Secured loans without credit checks carry comparatively lower interest rate and flexible terms and conditions compared to unsecured loans without credit checks. Also the loan amount is higher compared to unsecured option but you will have to risk your property in order to avail it.

Lenders require certain documents before advancing loans without credit checks to confirm your repayment ability. You must a full time job in order to avail loans without credit checks and to confirm this you will have to show your salary proof to the lender. Also you will have to show your last three pay slips to the lender. Another condition is, you must have lived at your current address for a period of at least 6 months. Last but not the least you must be 18 years of age or above in order to be eligible to avail loans without credit checks.

Loans without credit checks are very helpful for people suffering from bad credit status. With loans without credit checks bad credit borrowers can easily avail loans to meet their needs be it urgent or long term. Also bad credit borrowers can increase their credit score by timely and regular payment of loan installments.

There are many banks, financial institutions and lending firms that offer loans without credit checks. You can apply for loans without credit checks either through physical lenders or by applying online. Online application method is far better compared to tradition method. This way you can easily avail a loan without even meeting lenders personally. To apply you just need to fill up an online application form with your contact details and details regarding the loans you want to avail.

To conclude we can say that loans without credit checks can be availed by any and everyone be it a good credit borrower or a bad credit borrower without going through any credit check.

The essence of the 5K business (a business you start for $5,000 or less) lies in the fact that you can have low overhead expenses and make more money than your competition. But the 5K biz model also has requirements that need money and time. Often new business owners make the mistake of spending too much and deplete their resources.

Renting office space and buying new, state-of-the-art equipment are the top on my list of can-do-withouts. The success of a new 5K biz depends on your ability to keep your profits high and that is possible only if you equip yourself with some smart money-saving tips.

The best money saving tip I can give you is to work with online businesses as much as possible. With cut throat competition on the web, it isn’t difficult to find Internet businesses that excel in their field and offer you the most innovative products at prices the brick and mortar counterparts can’t match.

Here are 11 ways to reduce your expenses and keep more of the money you earn through your 5K biz. Let’s take a look:

1. Office space: A lot of new business owners feel having a well furnished office will give them a professional look. But most 5K businesses don’t really need an office to meet with their clients and can work out of a spare room. In a case like that, is it wise to spend hundreds of dollars every month on renting office space? However, if you still feel you need an office occasionally, try this new concept of renting office space for short periods. Look up ‘office rentals’ in your city’s Yellow Pages and you are sure to find one like [http://www.intellilgentoffice.com] or http://www.officeconcepts.com . By being a member of these groups, you can rent office space from them for as little as $11 an hour, have an official mailing address, a receptionist, and eliminate a big monthly bill.

2. Office supplies and equipment: Supplies like stationary and brochures can be very expensive but not if you know how to keep the costs low. I advise 5K biz owners to not print color stationary because it is an expenditure that doesn’t add value to your services. Try using black & white stationary that can be designed and printed on your own computer system. The same is true for printing brochures. Print if you must but keep the number low because brochures and other marketing collaterals are bound to become obsolete quickly as you grow in the business and add or delete services. Buy refurbished or second hand equipment from online auction sites like http://www.ebay.com to save money on computers, printers and other consumables.

3. Car expenses: This is one expense you can do little to minimize. However, there are a few things you can do to cut down your car expenses. For one shop around for economical car insurance to reduce your total bill. Another money saver is to try and resist the charm of the latest model because it doesn’t really add to your image but increases your expenditure. Thankfully, you can use your existing car for business purposes and deduct most of the expenses. To keep a check on your auto expenses, it is a good idea to put all business charges on a separate credit card.

4. Bank charges. There are no free business checking accounts at any bank. But you could look for a bank that offers reasonable charges and is close home so that you don’t add to your auto expenses by driving across town. You can try online banking but take care to check out the quality of their services and transaction speed. You may find that using the local bank is the best deal for maximizing your time and convenience.

5. Communications: An important factor of any business and especially a 5K business is easy and quick communication. Your clients should be able to reach you easily. Thankfully, there are several options available to keep your communication costs low. Growing competition has made phone services more affordable and easy to use. Use a service that offers add – ons like voice mail, caller ID, call waiting and forwarding. Having a fax and an email account are must haves for a 5K business and are also great money savers. Try [http://www.efax.xom] for a cheap way to get faxes without paying for a separate phone line.

6. Logo: Here is a great opportunity to use online graphic artists and get a great deal. There is a growing community of freelance designers on the Internet and getting a professional logo designed is a matter of a few days and as little as $50! Check out http://www.elance.com and http://www.guru.com.

7. Business cards: Business cards are a must for they not only give your company a professional image but are also a great advertising opportunity. I use http://www.vistaprint.com and http://www.iprint.com to print my business cards and save some money. Again a word of caution: don’t print 1000’s of cards at first. Start with 250 or so. Wait for your company to mature and see what services you want continue to offer. As you grow and learn, you will find that your business model will change.

These are big costs to be saved and if you can find an alternative to the elements of a traditional business model, you give your 5K biz a jump start on competition. With online businesses booming, see if you can find a deal and save that startup money.